You are on page 1of 26

GI (CDA) RULES, 1975

1. Short title and Application: These rules are called General Insurance (Conduct, Discipline and Appeal) Rules 1975 These are applicable to every person appointed to any post by the Company including Part-timers on Companys roll, except i) Officers from central or state services on deputation. ii) Those in casual employment or paid from contingency 2. Definitions: Act: means General Insurance Business (Nationalisation) Act 1972. Public Servant: Persons as mentioned in section 21 of IPC Family: Includes i. Spouse whether residing with him/her or not , but does not include spouse separated from employee by order of a competent court. ii. Sons/Daughters and step sons/daughters wholly dependent upon employee, but not include them whose custody deprived by any law iii.Any other person related to employee or spouse, whether by blood or marriage and wholly dependent on such employee.

GI (CDA) RULES, 1975


3. General Rules Every employee shall at all times i. maintain absolute integrity ii. maintain devotion to duty iii. do nothing which is unbecoming of a public servant iv. conform to all rules of the Company & obey all orders of superiors in course of official duty Every employee holding a supervisory post shall ensure integrity & devotion to duty of all employees under his control No employee shall in the performance of his official duties, act otherwise than in his best judgment & when acting under superiors direction shall obtain the direction in writing wherever practicable.

1. Theft, fraud, dishonesty in official matters 2. Taking or giving bribes or any illegal gratification 3. Possession of financial resources or property by the

4. Misconducts (List is not exhaustive)

4.
5. 6. 7.

8. 9.
10. 11.

employee, disproportionate to the known source of income Furnishing false information about self which are germane (Relevant) to employment at the time or during the course of employment. Acting in a manner prejudicial to the interest of the Company. Willful insubordination or disobedience Absence without leave/over-staying the sanctioned leave beyond 4 consecutive days without satisfactory explanation Habitual late or irregular attendance. Neglect of work including malingering or slowing down of work Damage to Companys property. Interference or tampering with any safety device installed.

4. Misconducts (Cont..)
12. Drunkenness or riotous or indecent behavior in the 13.

14.
15. 16.

17.
18. 19. 20. 21.

premises or outside related with the employment Gambling within premises of the establishment Collection of money without permission of the Competent Authority except sanctioned by any law of the land Sleeping while on duty Criminal offence involving moral turpitude Absence from work place without permission Smoking within the premises, where it is prohibited Purchasing or selling of properties of Company without permission of the Competent Authority in writing Commission of any act subversive of discipline or of good behaviour Abetment of or attempt at abetment of any act which amounts to misconduct

4. Misconducts (Cont.. NEW)IN 2012


22) Sharing of computer password to others without written sanction from the Competent Authority. 23) Any illegal activity committed through the use of Computer and/or Internet. 24) Indulging in any act of sexual harassment of any woman at her workplace. For this purpose, sexual harassment shall include such unwelcome sexually determined behavior (whether directly or otherwise) as : a) physical contact and advances b) a demand or request for sexual favours c) sexually coloured remarks d) showing pornography e) any other unwelcome physical, verbal or non-verbal conduct of sexual nature

Rule-5: The whole time of an employee shall be at the


Prohibitions

disposal of the Company unless it is otherwise distinctly provided. Rule-6: No employee to seek, solicit or accept any outside employment even on stipendiary or honorary basis without previous sanction of Competent Authority Rule-7: No employee shall undertake any outside part time work or accept fees thereof without sanction of the Competent Authority Rule-8: Every employee during service or after resignation or retirement is obliged to maintain official secrecy Rule-9: No employee to give evidence in any enquiry without permission of the Company. This is not applicable to any enquiry ordered by Government or Parliament or State legislature or any judicial or Dept. enquiry Rule-10: No employee can participate in politics or stand as candidate for election to any Parliament, Assembly or local authority.Employee should also prevent his family members and if unable should inform the Company.

Rule-11: No employee shall engage himself in any demonstration that involves incitement to an offence or abet any sort of strike Rule- 12: No employee can conduct or participate in any activities pertaining to press/ radio/ TV/ newspaper without permission from the Company. No sanction is required if broadcast or contribution is occasional or purely literary, artistic or scientific character Rule-13: No employee should accept or permit any member of his family to accept any gift from any person having official dealings with him. Gifts > Rs.500 (7000) from near relatives & friends having no official dealing must be reported to the CA. Employee shall not accept any gifts of > Rs. 250 (1500) from others without sanction from CA Rule- 14: No employee shall without sanction of the Company engage directly or indirectly in any trade, business or profession or allow any dependent member of the family to undertake any agency/ profession having links with Companys business

Prohibitions (Contd..)

Rule-15: Speculation in any stock, share or investment is prohibited. Frequent purchase/sale of stock, shares, securities & other investments shall be deemed to be speculation. Rule-16: No employee save in ordinary course of business with a bank or with a Public Limited Company shall himself or through any family member lend or borrow money as a principal or as an agent. Similarly cant lend money to any person at interest or return in money/kind Rule-16 A: Every employee on his first appointment should submit a Property return of his assets & liabilities in prescribed format. Thereafter submission of property returns in prescribed formats by all employees on annual basis by 30th April each year for the period ending 31st March immediately preceding. No employee without previous knowledge of CA shall acquire or dispose of any immovable properties. Every Employee shall report to the CA in prescribed format within 30 days all transaction of movable properties owned by him or family members if value exceeds Rs. 25000/-. In addition CA may at any time ask to submit the same.

Prohibitions (Contd..)

Prohibitions (Contd..) Rule-17: Employee should so manage his private affairs as to avoid habitual indebtness or insolvency. Employees in debt shall furnish a statement of his position half yearly (30th June & 31st December) and shall indicate the steps taken to rectify his position. Employee deemed to be in debt if liabilities excluding secured & Emp. Co-op. Credit Society loan exceeds 6 months salary. Rule-18: No employee can absent from duties without having permission from CA or be late in attendance. In emergency employee may avail one day CL provided the CA is promptly advised about the circumstances. CL(or EL or LOP) should be forfeited for 4th or subsequent late attending/early going in a month. Rule-19: No employee shall absent from his station overnight without prior sanction from CA.

Suspension
Rule 20: The appropriate authority (Competent to impose major penalty) may place an employee under suspension a. where a disciplinary proceeding is contemplated or is pending. b. Where a criminal offence against him is under investigation or trial. c. Where he is detained in custody, whether on a criminal charge or otherwise, for a period exceeding 48 hours. Rule 21: Subsistence allowance during suspension a. @ 50% of gross salary ( Basic, DA, CCA, HRA, Hill Station allowance, qualification pay, special pay, personal pay, etc.) during first 6 months. b. @ 75% after 6 months if period of suspension is prolonged due to reasons not attributed to him. c. @ 25% after 6 months if period of suspension is prolonged due to reasons attributed to him.

Suspension (Cont..)
Rule 21: Subsistence allowance during suspension (Cont.) d. If the employee is arrested by police on a criminal charge and bail is not granted no subsistence allowance is payable. Allowance is payable from the date he is granted bail NEW: NI 2012 The compulsory deductions like the following are to be made
from the subsistence allowance:
(a) Incometax / Service Tax. (b) Licence Fee/Monthly Rent for Residential Accommodation & allied charges, i.e. electricity, water charges etc. (c) Repayment of Loan & advance taken from the Company. (d) Premium for Group Mediclaim policy. (e) Contribution towards GSLIP. (f) Premium for LIC policies under salary saving scheme.

As no leave is granted to the employees under suspension, he/she is not entitled to LTS or/and leave encashment during the period of suspension, in spite of having leave at his credit.

Suspension (Cont..)
Rule 22: Treatment of period of suspension a) if honorably acquitted, full pay which he was entitled to during period of suspension less amount of subsistence allowance will be released to him. b) otherwise, such proportion of pay & allowances during the period of suspension as may be allowed by the Competent Authority, will be admissible with adjustment of subsistence allowance. c) if a case falls under (a) above, period of suspension will be treated as spent on duty. Otherwise it will be treated as not spent on duty. CA may grant leave to the extent admissible. The period not spent on duty shall not count for service, but will not constitute break in service

Rule 23: PENALTIES


Minor Penalties:
a) Censure b) Withholding of one or more increment for a specified period. c) Recovery towards pecuniary loss caused to the Company. NEW: NI 2012: d) Reduction to a lower stage in the time-scale for a period not exceeding three years without cumulative effect. e) Withholding of Pension or part thereof for a specified period. Major Penalties: f) Withholding of one or more increments permanently. g) Reduction to a lower service or post or to a lower time scale or to lower stage in a time- scale.

Rule 23: PENALTIES


Major Penalties ( Cont..) :
h) Compulsory retirement. i) Removal from service which shall not be a disqualification for future employment. j) Dismissal which shall ordinarily be a disqualification for future employment. NEW: NI 2012:

k) Withholding of Pension or reduction of pension or part thereof permanently.

Rule 24: Schedule of Authority


Category
GM/ DGM SCALE IV/V SCALE I,II,III Dev. Officer Sr. Asst. Asst./RC Sub-Staff

Appoint. Auth.
CMD

Disciplin. Auth.
CMD

Appellate Authority
H&R Committee of Board CMD

Memorial Authority
Board

GM

GM

H&R Committee of Board CMD CMD CMD CMD CMD

DGM Scale V Scale V Scale IV Scale IV

DGM Scale IV Scale IV Scale III Scale II

GM DGM DGM Scale V Scale V

Rule 25: Procedure for imposing Major Penalties


No order imposing any major penalty shall be

made without holding formal enquiry proceedings into allegations/charges. The enquiry is quasi judicial. The principle adopted here is Preponderance of probability, whereas in judicial system it is Proof beyond reasonable doubt. Steps in holding major penalty proceedings a) Framing of charge sheet by the disciplinary authority & its service on the delinquent employee and advising him/her to submit a written statement . b) On receipt of written statement from the employee, appointment of IO/PO by the disciplinary authority. On total admission of charges in the written statement, no formal enquiry through IO/PO will be necessary.

Procedure for imposing Major Penalties(contd..) c) Holding of preliminary proceedings, inspection of the documents by the employee. A list containing name of defence assistant, defence witnesses, additional documents if any to be submitted by the employee.

Defence Assistant An employee can take assistance of other employees but not legal practitioner. No employee shall act as DA outside Regional office of his posting and also in more than 2 cases at a time; otherwise not entitled for TA/DA.

d) Holding of enquiry proceedings by way of examination/ cross examination of management/defence witnesses, recording of oral/documentary evidences. e) Submission of brief by PO to IO on conclusion of enquiry.

Finalisation of enquiry report by IO and its submission to disciplinary authority, containing the following
a) gist of charges. b) gist of defence taken by the employee c) assessment of evidence. d) finding on each charge with specific conclusions. A copy of the enquiry report is forwarded to the employee by the Disciplinary Authority inviting his representation, if any, before taking action on the enquiry report. Rule 26: Action on Enquiry Report a) If not satisfied, the disciplinary authority may remit the case for further enquiry recording reasons therefor. b) If convinced with the enquiry report, disciplinary authority may pass an order imposing penalty commensurate with gravity of the charges established. If charges are not established, the disciplinary authority may pass an order exonerating the employee.

Rule-27: Procedure for imposing Minor Penalty


The employee shall be -informed in writing of the alleged misconduct & given an opportunity to submit written statement within 15 days. The defence statement vis-a-vis alleged misconduct shall be taken into consideration before passing of any order by the disciplinary authority. No inquiry is held for minor penalty charges. Rule 28: Communication of orders To be served personally on the employee if he is attending Office Otherwise by registered post with A/D & under Certificate of Posting in his last known residential address in the office record Otherwise to be affixed on the notice Board of the Office where the employee is posted Rule 29: Common Proceedings Where two or more employees are concerned in a case, the competent Authority to impose major penalty may make an order for common proceeding.

Rule 30: Special procedure in certain cases The Competent Authority may impose any of the penalty specified in Rule 23 in any of the following circumstances: The employee has been convicted on a criminal charge or by a judiciary trial When it is not reasonably practicable to hold an enquiry as prescribed, but the reasons to be recorded in writing. In the interest of the security of the Company it is not expedient to hold any enquiry. When the employee has abandoned his post. APPEAL: (From Rule 31 to 38) Rule-31: Right of Appeal Every delinquent employee has a right to appeal to the appellate authority against any penalty order served on him under rule 23 or under rule 20 ( Suspension). Rule-32: Period of Limitation for Appeal Appeal should be made within 3 months from the date of receipt of the order by the employee.

Rule 33: Form and Contents of Appeal Every person submitting an appeal -shall do so separately & in his own name. Appeal should be addressed to whom it lies & shall contain material statement & arguments, but shall not contain any disrespectful or improper language. Rule-34: Submission of Appeal Appeal is to be submitted through the authority who made the order appealed against. A copy of the appeal may be directly submitted to the appellate authority. Rule-35: Withholding of Appeal The Competent Authority may withhold the appeal if it does not comply rule 32 or 33 and if no new facts of circumstances are adduced. Where an appeal is withheld, the same should be returned to the appellant mentioning the reasons and if resubmitted within 1 month after complying rule - 33 shall not be withheld. All appeals withheld in a quarter should be informed to Appellate Authority with reasons.

Rule 36: Transmission of Appeal The Competent Authority without any avoidable delay should transmit all appeals which are not withheld under rule 35 to the appellate authority together with its comment. Rule-37: Consideration of Appeal In case of an appeal against any penalty order the appellate authority shall consider a) whether the procedures of enquiry have been complied with b) whether findings of IO are justified c) whether penalty imposed is excessive, adequate or inadequate and may pass orders confirming, reducing or enhancing the penalty. Enhancement of penalty can be made after giving an opportunity to the employee. All appeals should be disposed off within 6 months of receipt of appeal by appellate authority.

Rule 38: Appeal against other orders An employee may appeal against other orders. Rule-39: Review The (Corporation/)Company/CMD may on its/his own motion review any order which is made or appealable under CDA rule after calling for the records of the case. Rule 40: Memorial An employee whose appeal has been rejected by an appellate authority(A.A.) who is subordinate to CMD, may address a memorial to CMD in respect of the relevant matter within a period of 6 months from the date of receipt of the order of the appellate authority by him. Similarly where the A.A. is CMD or P&A Committee of the Board the memorial may be addressed to the P&A Committee or the Board of the Company as the case may be.

Rule-41: Canvassing non official or outside influence No employee shall bring or attempt to bring any political or outside influence for any matter pertaining to his service. No appeal petition, memorial shall be addressed by any employee by name to any outside authority not prescribed under CDA. Rule-42: Interpretation Any question relating to interpretation of these rules shall be referred to the Board whose decision shall be final. Rule 43: Amendments The Board may amend, modify or add to these rules which shall take effect from the date stated therein. Rule-44: Authority to issue Administrative Instructions The CMD of the Company may from time to time issue instructions or directions as may be necessary to give effect to and carry out the provisions of the rule and in order to secure effective control over the employees. Rule-45: Reference to Central Vigilance Commission (New) The CVO shall refer the matters to Central Vigilance Commission falling under its jurisdiction.

Special thanks to Dr. A.K. Panda

You might also like